Gavin Polone - Page 23

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          release from the defamation claim.  Each side demanded terms that           
          the other rejected.                                                         
          Settlement Reached                                                          
               On Wednesday, April 24, 1996, only days after petitioner’s             
          discharge, petitioner and UTA reached an agreement.  UTA agreed             
          to pay petitioner $4 million to settle the defamation claim and             
          $2 million plus the back-end payments to settle the breach of               
          contract claim.11  Petitioner wanted payment up front; however,             
          UTA would not agree to an up-front payment.                                 
               At the time of the settlement, the back-end payments were              
          estimated to be worth approximately $2 million.  As of the time             
          of trial, petitioner had received significantly more than $2                
          million in back-end payments, and the back-end payments were                
          continuing to be made to petitioner.                                        
               That same day, Ms. Dillman faxed a letter to UTA regarding             
          the settlement reached between petitioner and UTA (April 24,                
          1996, letter).  Also on that day, Mr. Berkus made handwritten               




               11  The agreement also consisted of many other monetary and            
          nonmonetary aspects.  These included a confidentiality provision,           
          petitioner’s right to audit UTA, UTA’s reimbursement of unpaid              
          expenses petitioner incurred for UTA, UTA’s provision of health             
          insurance to petitioner, UTA’s payment of petitioner’s accrued              
          vacation days, UTA’s payment of all petitioner’s legal fees                 
          incurred in connection with “this dispute”, petitioner’s                    
          refraining from interfering with collection of accounts                     
          receivable from petitioner’s clients, petitioner’s refraining               
          from disclosing UTA trade secrets, petitioner’s ability to                  
          compete against UTA, and the exchange of mutual and general                 
          releases.                                                                   



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